Pub. 6 2024 Issue 1

ENDNOTES 1 IRS Notice 2021-65 terminated the credit for Q4 of 2021, except for certain “recovery startup businesses.” 2 For purposes of the ERC for 2020, “large employer” means an employer with more than 100 full-time employees in 2019. For purposes of the ERC for 2021, “large employer” means an employer with more than 500 full-time employees in 2019. Proposed Federal Legislation Impacting ERC Claims At the time of writing, The Tax Relief for American Families and Workers Act of 2024 had passed in the U.S. House of Representatives and was headed to the U.S. Senate. If passed by the Senate and signed into law, the bill would significantly impact an employer’s ability to claim the ERC going forward. Specifically, the legislation would: Retroactively accelerate the deadline for amended returns to Jan. 31, 2024. Under current law, taxpayers have until April 15, 2024, to file amended 2020 returns and April 15, 2025, to file amended 2021 returns. Extend the IRS’ statute of limitations for assessment of ERC claims to six years. Increase the penalty for aiding and abetting the understatement of a tax liability by a COVID-related “promoter.” Currently, there is no clear timeline for the Senate to take up consideration of the bill, and many Senators have indicated a desire to make changes to the bill. Certainly, this proposed legislation warrants tracking and greater consideration of the withdrawal program and Voluntary Disclosure Program for clients. Jesse D. Sitz and Morgan L. Kreiser are partners at Baird Holm law firm. Sitz represents clients with respect to general corporate matters, estate planning and probate matters, federal and state tax planning issues, and tax-exempt matters. Kreiser represents clients with respect to all aspects of ERISA compliance and employee benefit programs, including qualified retirement plans, deferred compensation arrangements, equity compensation incentives, and health and welfare benefits. For more information, contact Sitz at (402) 636-8250 or jsitz@bairdholm.com or Kreiser at (402) 636-8206 or mkreiser@bairdholm.com. CONTINUED FROM PAGE 13 Experts in Accounting, Tax, Consulting, and Business Advisory Services. Family First Rooted in Omaha All Together Navigating with Integrity Knowledgable Embracing Leaders www.frankel.cpa | frankel@frankel.cpa | 402.496.9100 Celebrating 65 Years WE ARE 14 Nebraska CPA

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